Top thoughts on stocks and the markets from TheStreet's Doug Kass.
* The price of crude dropped by -$0.57 to $51.57/barrel.
* Gold rose by +$1.60 to $1290.
* Ag commodities: wheat -7, corn -1.50, soybeans -6 and oats +1.50. The recent strength in fertilizer stocks hasn't been accompanied by higher ag commodities prices.
*Lumber an outsized gain of +9. Not sure why.
* Bonds were flattish. The 10 year US note yield is at 2.31% after trading three bps higher earlier in the day. (at an important technical pivot spot) The 2s/10s curve rose by two basis points.
* Municipals fell modestly and high yield rallied small.
* Banks moved higher. Wells Fargo ( WFC) underperformed today.
* Brokerages flat.
* Insurance was notably weak, though Radian ( RDN) made another new monthly high.
* Autos settled down as the recent rise stalled.
* Ag equipment remains a force to reckon with.
* Biotech weakened all day - led by Allergan ( AGN) and Gilead ( GILD) (both -$3) Spec biotech also got hit. I would now be cautious in the group.
* Old tech was subdued.* More weakness in optical space -- near recent lows.
* Retail also locked in neutral.
* Media fell - led by Disney ( DIS) , an investment short, and more weakness in Comcast ( CMCSA) .
* (T)FAANG was mixed -- but in an overall sense underperformed. (See my Three Part Series on why I would Sell FANG) I shorted more Facebook ( FB) and Apple ( AAPL) on Wednesday's strong rebound.
We finally got a good Treasury auction as buyers took advantage of the sharp selloff over the past 3 days. The 7 year auction yielded 2.13%, about 1 bp below the when issued. The bid to cover of 2.70 was above the one year average of 2.53. Also of note, direct and indirect bidders took 90% of the deal vs the previous twelve month average of 79%.
- How valuations get stretched even more.
- How he wouldn't lace up Nike as a long.
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